What does an appraisal estimate?

An appraisal primarily estimates the property's market value, which is the most probable price that a willing buyer would pay to a willing seller in an open and competitive market. This process involves analyzing various factors, including recent comparable sales, market trends, property condition, and location, to determine what the property would likely sell for under normal conditions.

While the appraisal may provide insights that can influence selling price or can help portray the potential rent value, it does not directly determine either of these amounts. The estimated market value is intended to be an objective assessment rather than a fixed selling price.

In terms of tax assessments, these are often determined using different methods and may not always align with the appraised market value. For instance, tax assessments may incorporate standardized rates or existing property tax guidelines, rather than the nuanced analysis an appraisal entails to gauge current market conditions.